Spotlight

Indian markets are expected to trade with a positive bias as investors respond to a significant easing of geopolitical risks following a breakthrough in U.S.-Iran negotiations. The United States and Iran have reportedly signed a preliminary agreement, with U.S. President Donald Trump and Iran's lead negotiator endorsing a framework that could pave the way for the reopening of the Strait of Hormuz. The agreement is being seen as a major step towards regional stability and has strengthened confidence across global financial markets by reducing concerns over energy supply disruptions and broader geopolitical uncertainty. This is expected to support wider market participation and strengthen the ongoing recovery, particularly in oil-sensitive sectors that stand to benefit from lower energy prices and improving economic conditions.

Crude oil prices have stabilized following their recent sharp decline and are currently trading in the $80–82 per barrel range. Foreign Institutional Investor (FII) activity has also shown early signs of improvement. After several consecutive weeks of heavy selling, FIIs turned net buyers in the previous session, recording net inflows of approximately ?200 crore. While the magnitude of buying remains modest, the shift from persistent selling to net buying could signal a moderation in foreign outflow pressure and provide additional support to market sentiment.
 
Sectorally, the improvement in sentiment and lower crude oil prices are driving strong buying interest in real estate, automobile, consumer durables, and Oil Marketing Company (OMC) stocks. These sectors are expected to be among the key beneficiaries of easing energy costs, improving consumer sentiment, and a more supportive macroeconomic environment.

 
Technical view

Nifty 50

Nifty 50 continues to trade with a positive bias following the strong recovery witnessed in recent sessions, reflecting improving market sentiment and renewed buying interest. From a technical perspective, the 24,000 level remains a crucial immediate resistance area and a key psychological hurdle for the index. A sustained breakout above this zone could reinforce bullish momentum and pave the way for a further advance towards the 24,200–24,400 region, which remains the next significant resistance band.
 
On the downside, the 23,800 level is expected to act as an important immediate support area. Holding above this level will be essential to preserve the ongoing recovery trend and maintain the positive market structure. However, a decisive breach below 23,800 could trigger profit booking and drag the index towards the 23,600–23,500 support zone. Momentum indicators continue to improve and remain positively aligned, suggesting strengthening underlying sentiment and growing buying participation. The index has successfully held on to its recent breakout gains, and a sustained move above 24,000 will be crucial to confirm stronger bullish momentum and support a continuation of the ongoing recovery towards higher resistance levels.

Bank Nifty

Bank Nifty continues to trade with a positive bias, supported by sustained buying interest in banking stocks and improving sentiment across the financial sector. Technically, the 57,800–58,000 zone continues to act as a significant immediate resistance area. A sustained breakout above this range would strengthen bullish momentum and could pave the way for a further advance towards the 58,300–58,500 region, which remains the next major resistance band.
 
On the downside, the 57,000 level remains a crucial support zone. Holding above this level will be important to preserve the prevailing positive structure and maintain the ongoing recovery trend. However, a decisive break below 57,000 could trigger renewed profit booking and expose the index to the 56,700–56,500 support region. Momentum indicators remain constructive and continue to support the positive trend, reflecting improving underlying strength and healthy buying participation. Overall, the near-term outlook for Bank Nifty remains positive, with sustained strength above key support levels keeping the broader recovery intact. A decisive move above 58,000 would further reinforce the bullish outlook and increase the likelihood of an extension towards higher resistance levels.